English Nepali
Need of PPA for encouraging investment on Cogeneration
2015-07-03

A need for joint efforts from government and the private sector has been identified as a prerequisite for developing a necessary framework for power purchase agreement (PPA) that encourages investment in cogeneration for generating electricity from sugar industries in Nepal. The urge for PPA has been stressed during Investment Dialogue on Cogeneration organized here on Friday 26.06.2015. The dialogue organized as a follow up steps after recent cabinet decision on promotion of cogeneration in Nepal has been organized by the Ministry of Energy together with German Development Cooperation – GIZ under the framework of Nepal Energy Efficiency Pogramme (NEEP). NEEP, the Nepali-German Programme, currently in its second phase, is implemented by Ministry of Energy and supported by GIZ on behalf of the Federal Ministry of Economic Cooperation and Development (BMZ).

Speaking on the occasion, Mr. Keshab Dhoj Adhikari, Joint Secretary at Ministry of Energy highlighted on the future steps from the government and the expected efforts from the industries in realizing the benefits of cogeneration jointly. Elaborating on the recent policy decision on promotion of cogeneration, Mr. Adhikari elaborated on the government efforts in developing necessary framework for implementing the policy. Emphasizing on the potential of win-win situation to government, sugar industries, farmers and electricity consumers as the implications of the policy on Cogeneration, Mr. Dirk Steffes-enn, Deputy Head of Development Cooperation, German Embassy emphasized on the future efforts necessary for harnessing the potential.  Mr. Steffes-enn further shared the preparedness of the German government to support in future efforts towards enhancing capacity of energy mix from sustainable sources in the country and also the country’s capacity for regional power trade.

As cogeneration appears to be a promising source of electricity not only for domestic market but also for desired regional power trade, Mr. Hitendra Dev Shakya Director of Nepal Electricity Authority (NEA), GIZ, Mr. Frank Boemer, Chief Technical Advisor of NEEP, Mr. Sashi Agrawal, president of Sugar Producers Association, Mr. Stephane Barbeau of IFC and Mr. G C Datta Roy of Dalkia Energy Service Limited (DESL) elaborated on essential elements including the need of PPA and the roles different organizations need to play as the next step in realizing the cogeneration in Nepal. Earlier, on 3 June 2015, Cabinet’s Economic and Infrastructure Committee approved a proposal on cogeneration. With the approval, the bagasse, which is otherwise a waste material of sugar industry, can now be turned into a reliable source of electricity not only for the internal use of the industry but also as an additional power supply to the national grid. Accordingly, on one hand sugar industries with cogeneration system can have additional income through sales of surplus electricity. On the other, supply of power to the grid would be beneficial to NEA directly to improve stability of the grid.

During the programme Joint Secretary Mr. Adhikari also launched new website of NEEP -energyefficiency.gov.np. In addition to the NEEP activities, the website contains different information relating to energy efficiency. 

 

Further information:

Click here for more information on cogeneration opportunities in Nepal

http://energyefficiency.gov.np/downloadthis/cogen_opportunities_nepalese_sugar_sector.pdf

Click here for more information on cogeneration

https://energypedia.info/wiki/Cogeneration

Click here for media coverage on Cabinet’s decision on cogeneration

http://www.annapurnapost.com/News.aspx/story/12713

http://www.ekantipur.com/the-kathmandu-post/2015/06/03/money/cabinet-approves-using-bagasse-for-bioenergy/276936.html

http://www.enayapatrika.com/epaper/june-04/

What is
Energy Efficiency?
Energy Efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services.
(In short terms: Do more with less)
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